VFD mulls banking license, seeks to raise additional capital

VFD Group has raised the sum of  N2.78 billion has from a rights issue and private placement exercise. The company disclosed this in a press release.

The amount is 39% above the N2 billion the firm expected to raise from a rights issue and private placement respectively.

Kairos Capital Limited was financial adviser to both transactions which opened on the 3rd of December 2018 and closed on the 31st of December 2018.

Where will the funds be channeled to? 

The funds raised will be used to deepen the group’s presence in the financial services space in Nigeria.

Group Managing Director of the group Nonso Okpala had in an interview with Nairametrics late last year (following its 2nd Annual General Meeting ), had hinted at plans to take a stake in a national bank. 

We think that in the growth phase, it’s very safe to go for a regional banking license which goes for N10 billion as against a national banking license which requires N25 billion.

Okpala also stated why the group would prefer a bank in the South West region.

We think that the South West geo-political zone has a great deal of commercial opportunities and we can use that advantage to grow. We are definitely heading for an international bank status, but the objective is to start from a regional banking perspective.

The group this week alongside, alongside Eaton Acquisition Limited, Three Seas Investment and Premium Green Limited, announced it had exited NEM Insurance Plc.

1.6  billion shares representing 30% of the company’s issued share capital, was sold to new shareholders.

VFD Group was incorporated with the Corporate Affairs Commission (CAC) on 7th July 2009 and commenced business operations effectively on the 1st of January 2011. The company’s subsidiaries include VFD Microfinance Bank, Everdon Bureau De Change, Anchoria Asset Management and Germaine Auto Centre.

Deal book 300 x 250
Deal book 300 x 250

 

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com

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